Climate Risk Management
Identifying, assessing and monitoring all risks across our businesses, including climate-related risks and opportunities.
Our robust Risk Management Framework is used to identify and manage all our strategic and operational risks, including our climate-related risks.
Our key climate risks and opportunities
To ensure our risk management approach remains robust and responsive, we have integrated climate-related considerations into our Risk Management Framework. This includes at least annual review of risk assessments to reflect the current operating environment, as well as evaluating controls and treatment plans to ensure our risk mitigation strategies remian effective and appropriate. By embedding climate-related risks and opportunities into our broader risk management processes, we aim to enhance resilience and to support sustainable long-term business outcomes.
Physical Risks
- Our physical climate risk register includes a series of both chronic and acute risks that could impact our operations. These range from risks associated with supply chain disruptions to geotechnical ground movements, changed wind patterns, major flooding and more extreme and/or frequent weather events such as snowstorms, heatwaves and hurricanes. Our risk assessments consider potential impacts to infrastructure, employee and customer health and safety and to customers. The physical risk assessment drew directly from quantitative physical climate modelling conducted across the roads within each of our businesses.
Transition Risks
- Our assessment of transition risks consider market, policy and legal, reputation and technology risks. These range from changes in customer behaviour, changes in energy prices and availability and the emergence of new regulations to increasing stakeholder expectations and ineffective management of our GHG emissions profile. The transition risk assessment was based on a qualitative assessment.
Opportunities
- Alongside the risks, various climate-related opportunities also arise as we transition to a low-carbon economy. Some potential opportunities include: the ability to access new markets and capital as a result of increased trust and enhanced reputation; more asset resilience; and cost savings associated with reductions in energy use and GHG emissions.
Understanding our Climate-related risks and opportunities
Details of our highest rated climate–related risks and opportunities here
Physical Risks
- Major flooding impacts on our roads
- More extreme and frequent heatwaves/ extreme heat impacts on our roads
- Health and safety of employees and customers due to climate change
Transition Risks
- Ineffective management of emissions profile
- Emergence of new regulations
Opportunities
- Access to new business and capital due to enhanced trust and reputation arising from strong sustainability practices
- Significant cost savings through reductions in energy use and GHG emissions